ACCORDING to some data from Experian, micro businesses – those with one to nine employees – have managed to get through the recession with remarkably fewer insolvencies compared to other sectors in the market.
This is, in part, thanks to their flexibility: the ability to duck, dive, find sources of revenue from just about anywhere – and, of course, low overheads usually help.
But it does seem to me that at a time when small businesses need a suite of car financing solutions available to them they are facing reduced choice.
If you’ve been following the stories about what, at least on the face of it, looks like a concerted attempt by some of the major banks and leasing companies to ditch a whole swathe of car leasing brokers, you’ll realise that smaller businesses have less choice (see Business owners face reduced car financing choices).
The BVRLA, which polices such matters, says the market will be better and stronger as a result. In some ways you probably can’t argue with that – the good car leasing brokers will continue to do what they’ve always done well: provide a considered range of solutions and advice for business owners at a local business to business level.
But reducing the availability of personal car leasing options sounds like the banks and leasing companies just want to shore up their books.
In fact, talking to Mike Lloyd yesterday from BVRLA-approved car leasing broker Central Contracts, it certainly sounded that way.
Mike said that, since May, the company had seen a doubling in leasing enquiries to 600 per week. “There’s certainly no shortage of demand,” Mike explained to me.
“The real issue is with the underwriters. They are being incredibly picky with every detail of a finance application. That’s what it comes down to.
“But look, there’s no question that things are getting better. Trade was tough, certainly. But now it’s rising. Which is great. Small businesses are coming to us for car enquiries. And we’re getting on with finding them the best finance deal. Which is what it’s all about.”
Looking at Mike’s car leasing broker site I notice that my Audi A6 TDIe is on there with leather and sat nav for £319.99 a month on contract hire; and £367.99 on personal contract hire, both over three years and 30,000 miles.
Which sounds like a top deal on a top car.
